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Tuesday, November 24, 2009

CN To Lift Union Engineers' Pay, Alter a Work Rule

By Robert Daniel

MarketWatch Pulse

TEL AVIV -- Canadian National Railway Co., the Montr�al railroad operator, said late on Monday that after the company and the Teamsters union were unable to reach an agreement, it would raise wages and change the mileage caps for its union-represented locomotive engineers in Canada. Collective bargaining with the Teamsters Canada Rail Conference ended Nov. 20 without a settlement, CN said in a statement. The current labor agreement expired Dec. 31, 2008. The company said it would raise the engineers' wages 1.5% and change one work rule. Up to now, CN said, Teamsters conductors have a 4300-mile cap while its 1700 Teamsters locomotive engineers have a 3800-mile cap. Under the change, both groups of employees will work under the higher mileage cap and engineers' compensation will rise, CN said. The company said its locomotive engineers work an average 15 to 17 days a month. In a statement Monday, the union said it was "disappointed that CN has declined to continue negotiations as it appears they want to force federal government intervention without having to negotiate." Under Canada's labor laws, the Teamsters can strike and CN can declare a lockout by giving 72 hours' notice to the other party, CN said.

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